Veterans Journal: How do military special credits work with Social Security?

By George W. ReillySpecial to The Journal

Sunday

Jun 17, 2018 at 6:06 PMJun 17, 2018 at 6:06 PM

Did you know that the time you spent in uniform from 1940 to 2001 can boost your wage record and, perhaps, your Social Security benefit? In an article written by Stan Hinden on the AARP website (https://bit.ly/2MqDygQ), he states that if veterans have qualifying military service during those years, they can receive credit for additional wages, ultimately raising their monthly Social Security payment.

How does that work?

When veterans apply for retirement or disability benefits, Social Security checks their work records. If they have qualifying military service, they get credit for additional wages for their military service. These credits are added to the veteran's lifetime earnings record and not to an eligible veteran's monthly benefit check. But, because Social Security uses lifetime earnings as the basis for figuring out a person's retirement benefits, the credits can ultimately raise the monthly payment.

A Social Security benefits calculator telling you when you should claim yours can be seen online at https://bit.ly/2t6ZNzx.

How did these wage boosts for Social Security come about? During World War II, members of the armed forces were not covered by Social Security, meaning they did not pay into the system and could not receive benefits based on their service.

After the war, with veterans returning to the civilian workforce, Congress granted them extra credits on their records for the time of service. This was intended to help compensate for the low wages they had been paid while in uniform and to offset the loss of civilian earnings that would have helped them qualify for or improve their Social Security retirement benefits.

In 1957, members of the military on active duty were covered by Social Security and paid Social Security taxes. In 1988, Social Security coverage was extended to those on inactive duty in the reserves. Both changes retained the practice of giving veterans a little bit extra in wage credits.

Not all veterans get the credits, however. The credits are awarded in differing amounts according to certain time periods and length of service. The following applies to vets who were on active duty or active duty for training during these time periods:

— 1940 through 1956: Veterans with active service during World War II (defined as Sept. 16, 1940, through July 24, 1947) or the post-World War II period (July 25, 1947, through Dec. 31, 1956) are credited with an extra $160 in Social Security earnings for each month of military service.

— 1957 through 1977: Veterans of this period are credited with $300 in additional Social Security earnings for each calendar quarter in which they received active duty basic pay.

— 1978 through 2001: For every $300 in active duty basic pay, these veterans are credited with an extra $100 in Social Security earnings, up to a maximum of $1,200 a year. But, if you enlisted after Sept. 7, 1980, and did not complete at least 24 months of active duty or a full tour, you may not be able to receive these added credits.

In 2001, Congress eliminated the program. Thus, military service in calendar year 2002 and later years no longer qualifies for the special credits. You can still receive both your military pension and your Social Security benefits, which will be based on your lifelong earnings, including any military wage credits. While a military pension will not cut your Social Security benefits, they may be trimmed if you have a civilian government pension from a job in which you did not pay Social Security taxes.

You do not need to apply for these special credits, according to Social Security. They will be automatically added to your earnings when you apply for retirement or disability benefits. However, it may be wise to ask your Social Security representative at that time whether your work record shows that credits have been added to your account. If asked for proof of your military service, DD Form 214 (Certificate of Release or Discharge from Active Duty) is the document most often used for this purpose.

Have you lost or misplaced your DD 214? Go online to the National Archives at https://bit.ly/2nJtLtf to request a copy. For more information, see the Social Security online publication "Military Service and Social Security," or call Social Security at (800) 772-1213.

Grant contest open to

vet-owned businesses

Bob Evans Farms is now sponsoring its second annual Our Farm Salutes grant-giving program "Heroes to CEOs." The company is taking applications now through June 27 to award three veteran-owned businesses with grants of $25,000 as well as an all-expenses-paid, three-day trip for two to New York City for a half-day mentoring and coaching session with Daymond John, an investor and entrepreneur on ABC’s "Shark Tank."

The "Heroes to CEOs" grant contest is the largest veterans-only business grant in the country open to all veterans of all U.S. military branches who own an independent registered business or have a plan for an independent business or nonprofit organization. For more information or to complete the contest application, go online to https://www.ourfarmsalutes.com/.

Meetings

— Veterans of Foreign Wars: Gatchell Post 306 and Auxiliary units, 6 p.m. Monday, June 18, 171 Fountain St., Pawtucket, and a spaghetti dinner fundraiser will be held on June 28 at the post home, from 4 to 7 p.m., with $10 tickets sold at the door; Smithfield Memorial Post 2929, 7 p.m. Wednesday, June 20, 47 Farnum Pike, Smithfield.

— Disabled American Veterans Josiah Broadfoot Chapter 6, 6:30 p.m. Monday, June 18, VFW Post, 113 Beach St., Westerly. Project Outreach of Westerly assists veterans with questions on disability claims, health benefits and pensions; call the VFW post in Westerly at (401) 596-0470 or visit the post at 113 Beach St. to talk with service officers on the third Monday (today, June 18) and the first Wed. (July 3) of each month from 5 to 6:30 p.m.